#USChinaTensions The jet’s delivery was derailed by fresh tariffs that made the transaction financially untenable. Earlier this month, the U.S. raised tariffs on various Chinese imports to 145%, prompting China to retaliate with a 125% duty on several American goods—including commercial aircraft. These levies would have more than doubled the final cost of the plane, pushing it above $110 million and forcing the Chinese buyer to walk away.

This incident underscores the escalating economic standoff between the two nations and puts Boeing’s future in the Chinese market at risk. With China being a major customer for Boeing, prolonged disputes could drive its airlines toward competitors like Airbus. The situation also poses broader risks for the global aviation sector, which is already navigating supply chain issues and regulatory hurdles.